XDCX
01-11-2012, 10:49 AM
Various news sources reported that Wonder Bread, the maker of Twinkies and Ho-Hos, has filed for Chapter 11 Bankruptcy. Here's a link to the story in USAToday - click here (http://www.usatoday.com/money/industries/food/story/2012-01-11/hostess-bankruptcy-twinkies-wonder-bread/52495162/1)
So why did I list Wonder Bread's bankruptcy as a "Chapter 22" in the title to this thread? It's Wonder Bread's second trip through Chapter 11, they just emerged from their last Chapter 11 in 2009. :mad:
The two largest unsecured creditors are Wonder Bread's union pension funds - owed almost $1 Billion.
Here's an excerpt from the USAToday report:
Hostess President and CEO Brian Driscoll said the company is working to reach an agreement with its unions to modify its collective bargaining contracts. The company said its current cost structure is not competitive, mostly because of legacy pension and medical benefit obligations and restrictive work rules.
Hostess said those issues, coupled with more competition and difficult economic conditions, created a worsening cash flow situation that drove its need to reorganize.
Can you imagine the nightmarish scenario the UAW would face if Marchionne ever decided to take a similar path and the UAW no longer had an ally in the White House?
To be clear, I not suggesting that Chrysler's headed for a second bankruptcy, but I bet there are some UAW execs who lay awake at night wondering what would happen if they did....
So why did I list Wonder Bread's bankruptcy as a "Chapter 22" in the title to this thread? It's Wonder Bread's second trip through Chapter 11, they just emerged from their last Chapter 11 in 2009. :mad:
The two largest unsecured creditors are Wonder Bread's union pension funds - owed almost $1 Billion.
Here's an excerpt from the USAToday report:
Hostess President and CEO Brian Driscoll said the company is working to reach an agreement with its unions to modify its collective bargaining contracts. The company said its current cost structure is not competitive, mostly because of legacy pension and medical benefit obligations and restrictive work rules.
Hostess said those issues, coupled with more competition and difficult economic conditions, created a worsening cash flow situation that drove its need to reorganize.
Can you imagine the nightmarish scenario the UAW would face if Marchionne ever decided to take a similar path and the UAW no longer had an ally in the White House?
To be clear, I not suggesting that Chrysler's headed for a second bankruptcy, but I bet there are some UAW execs who lay awake at night wondering what would happen if they did....